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Alan Greenspan, former Federal Reserve chairman, continues to argue that even financial products that led to the economic crisis should not be banned, affirming his belief that markets should be the final arbiter over which tools work.

Surely an epic market crash can be taken as a final market determination that the tools don't work?

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma

by Migeru (migeru at eurotrib dot com) on Fri Oct 2nd, 2009 at 02:43:26 PM EST
[ Parent ]
The tools are still being used by participants in the markets. So apparently the gains outweigh the (always perfectly priced in) risk of systemic collapse.

</KoolAid>

- Jake

If you only spend 20 minutes of the rest of your life on economics, go spend them here.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Fri Oct 2nd, 2009 at 05:32:21 PM EST
[ Parent ]

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